...China’s House Price: Affected by Economic Fundamentals or Real Estate Policy? © Higher Education Press and Springer-Verlag 2010 Abstract Many theory and empirical literature conclude that house price can reflect economic fundamentals in the long-term. However, by using China’s panel data of 35 main cities stretching from 1998 to 2007, we find that there is no stable relationship between house price and economic fundamentals. House price has deviated upward from the economic fundamentals since government started macro-control of the real estate market. We consider that the mechanism between the house price and economic fundamentals is distorted by China’s real estate policy, especially its land policy. Meanwhile the policy itself is an important factor in explaining the changes of China’s house price. Then we estimate the dynamic panel data model on house price and the variables which are controlled by real estate policy. The result shows: land supply has negative effects on house price; financial mortgages for real estate have positive effects on house price; and the area of housing sold and the area of vacant housing, which reflects the supply and demand of the housing market, has negative effects on house price. We also find some differences in house price influence factor between eastern and mid-western cities. Finally, we propose policy suggestions according to the empirical results. Keywords house price, economic fundamental, real estate policy, dynamic panel data model...
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...Week Two Student Guide Week Two continues to focus on fundamental concepts and indicators of the macroeconomy. The main topics uncovered for this week include aggregate demand, aggregate supply, the Keynesian Model, and the Classical Model. You have an opportunity to explore these concepts in the Learning Team Weekly Reflection, the Fundamentals of Macroeconomics Paper, and the discussion topic. Aggregate Demand and Supply Models OBJECTIVE: Analyze the impact of various factors on aggregate demand and supply. Resource: Ch. 10 of Macroeconomics. Content • Ch. 10: “The Aggregate Demand/Aggregate Supply Model” o The Historical Development of Modern Macro o The AS/AD Model o The Aggregate Demand Curve o The Short-Run Aggregate Supply Curve o The Long-Run Aggregate Supply Curve o Equilibrium in the Aggregate Economy o Why Macro Policy Is More Complicate Than the AS/AD Model Makes It Look OBJECTIVE: Evaluate the effectiveness of changes in fiscal policies using Keynesian and Classical models Resource: Ch. 12 of Macroeconomics. Content • Ch. 12: “Thinking Like a Modern Macroeconomist” o Why It Is Important to Know about Modern Macro Theory o Engineering Models and Scientific Models o From the Keynesian Revolution to Modern Macro Models o A Beginner’s Guide to the DSGE Model o Policy Implications of the DSGE Model o How Relevant Are the Problems? o Modern Macroeconomic...
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...dedeMAPÚA INSTITUTE OF TECHNOLOGY School of Industrial Engineering and Engineering Management VISION Mapúa shall be an international center of excellence in technology education by: providing instructions that are current in content and state-of-the art in delivery; engaging in cutting-edge research; and responding to the big local and global technological challenges of the times MISSION a) The mission of Mapúa Institute of Technology is to disseminate, generate, preserve and apply scientific, engineering, architectural and IT knowledge. b) The Institute shall, using the most effective means, provide its students with professional and advanced scientific and engineering, architectural and information technology education through rigorous and upto-date academic programs with ample opportunities for the exercise of creativity and the experience of discovery. c) It shall implement curricula that, while being steeped in technologies, shall also be rich in the humanities, languages and social sciences that will inculcate ethics. d) The Institute shall advance and preserve knowledge by undertaking research and reporting on the results of such inquiries. e) The Institute, singly or in collaboration with others, shall bring to bear the world's vast store of knowledge in science, engineering and other realms on the problems of the industry and the community in order to make the Philippines and the world a better place. MISSION a 1. To prepare students for a professional Engineering...
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...important role inthe growth process of an economy. Various FDI theories provide the motivations and determinants ofFDI. Economists broadly classified the FDI theories into macro-level and micro-level FDI theories. Themacro-level FDI theories give the macroeconomic factors that determine the FDI and micro-leveltheories discuss the motivation of FDI associated with the firm level. Besides these two categories,the development theories of FDI also discussed the motivation of FDI flows. JEL Classification : F21, F23. Key words: FDI theories, macro-level FDI theories, Micro-level FDI theories, DevelopmentFDI theories.The Foreign Direct Investment (FDI) theories can be classified broadly into twocategories. One is at the macro level and the other is at the micro level. Again at the macro-level, we have capital market theory, Dynamic macroeconomic theory, FDI theories based onexchange rates, FDI theories based on economic geography, gravity approach to FDI and FDItheories based on institutional analysis. At the micro-level, we have the theories likeExistence of firm specific advantages (Hymer), FDI and oligopolistic markets, Theory ofinternalization, and Electic FDI theory (John Dunning). Recently another type of FDIcategories discussed by the economists is the development theories which combine both themicro level and macro-level FDI theories. The development theories are Life cycle theory,Japanese FDI theories and five stage theories (John Dunning). What are the factors thatattract FDI...
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...most constant aspects of American life is change – and nowhere is it more evident than in our financial markets.” – Henry Paulson, in his remarks on Blueprint for Regulatory Reform (3/31/2008) It is hard to believe that we have had so many market crashes throughout history and yet there exist so many people that claim they can guarantee certain returns. This fallacy is one of the main components of economics as a study. So called experts have been known to praise certain theories while they unknowingly march into a market crash. In order to understand how market crashes happen, it is critical to understand the beliefs that were held leading up to past crises. In Olivier J. Blanchard’s paper published in 2008 by the National Bureau of Economic Research, he declares that “the state of macro is good” (Blanchard 2008, 2). Blanchard, of MIT, was expressing his contempt with the way in which the macroeconomy appeared to be operating and the ability of economists to explain the operations. He was not alone. Alan Greenspan, former Federal Reserve Chairman, admitted in October of 2008 to the House Committee on Oversight and Government Reform that he was “shocked because [he had] been going for 40 years or more with very considerable evidence that [the economy] was working exceptionally well.” What had led these renowned experts to believe all was well while the markets were wildly deviating from their expectations? The answer lies in the belief held by many economists of an “idealized...
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...Macro Systems Paper There are a lot of different areas that affect us as individuals, communities, and as families. There are expectations on how people believe things should be. As a human service professional it is important to understand the different areas of social systems and what roles we as professionals and the other things that will play a part in these areas. Throughout this paper we will discuss personal, interpersonal, and political empowerment, macro systems, individual involvement with the different social systems, and poverty. According to Lippincott and Wilkins, Inc. (2007), “The term empowerment has different meanings in different sociocultural and political contexts. Broadly speaking, empowerment refers to the expansion of assets and capabilities of poor people to participate in, negotiate with, influence, control, and hold accountable institutions that affect people’s lives.” (p. 120). With there being so many different definition’s and understandings of empowerment, we are only going to review three areas, personal, interpersonal, and political empowerment. Personal empowerment is something we all have experienced at a few different times in our lives. This is when an individual decides to make a positive improvement in their lives or within their community or neighborhood. They stand up for what they believe is right and worth fixing or fighting for, maybe not just for themselves, but for others. At an intimate level we may decide to change how...
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...Economic Advisement Paper Team C ECO/372 September 9, 2013 Robert Freita Jr. Economic Advisement Paper The total value of the services and goods that are produced in a country, also the value of goods imported that decrease value of exports is Aggregate supply. Aggregate demand is the sum of all demand in an economy, and will be calculated investment, services and not exports. In this paper team C will discuss the economic recovery from the prospective of Unemployment, Consumer income, Interest rates, and Expectations respectively of the U.S. This information will be summarized and recommendations made to the president regarding government spending and taxes based on the aforementioned economic factors. Unemployment The easiest way to understand how aggregate supply and demand affect unemployment is to think about unemployment in its simplest form. The rise and fall of the nation’s unemployment rate is at best a simple matter of supply and demand. The numbers of people who want jobs at necessary wages (labor supply) exceeds the number of people firms are willing to hire (labor demand) (Beggs, 2012). The most fundamental of economic model suggest that when supply exceeds demand the price in that market will fall; in the labor market this means that wages fall. It stands to reason that falling wages should encourage employers to hire more workers. Moreover, if wage fall firms production cost will decline this will induce competitive firms to reduce their price...
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...Bus 640 Managerial Marketing Week Two Assignment One February 13, 2012 Abstract This paper will be discovering the macro environmental trends that encompass most businesses both domestic and foreign. Regardless of where the organization is located, the marketing managers must comprehend the demographical regions in which they conduct business transactions, the sociocultural situations and well the economic livelihood of the populace. Additionally, this paper will explore the technological resources, regulatory rules of the regions they are conducting business in, and the regulatory rules that may have a favorable or unfavorable affect on conducting business in the regions they wish to conduct business. The focus organization is Coca-Cola and how they marketed water and healthy beverages versus carbonated Coca-Cola products. Introduction The Coca-Cola Company has ventured into the water business with the onset of more and more people embracing a healthier lifestyle. This paper will be encompassing the six categories defined in Marketing Management A Strategic Decision Making Approach, which are demographics, sociocultural, economics, technological, regulatory, and natural environments (Mullins & Walker. p. 97). These six categories are relevant because the trends are what the marketing managers must understand to understand what influences the demands of the general market. In many areas, the push for bottled water and healthy beverages is becoming...
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...RESERVE BANK OF SAN FRANCISCO WORKING PAPER SERIES Macro-Finance Models of Interest Rates and the Economy Glenn D. Rudebusch Federal Reserve Bank of San Francisco January 2010 Working Paper 2010-01 http://www.frbsf.org/publications/economics/papers/2010/wp10-01bk.pdf The views in this paper are solely the responsibility of the authors and should not be interpreted as reflecting the views of the Federal Reserve Bank of San Francisco or the Board of Governors of the Federal Reserve System. Macro-Finance Models of Interest Rates and the Economy Glenn D. Rudebusch∗ Federal Reserve Bank of San Francisco Abstract During the past decade, much new research has combined elements of finance, monetary economics, and macroeconomics in order to study the relationship between the term structure of interest rates and the economy. In this survey, I describe three different strands of such interdisciplinary macro-finance term structure research. The first adds macroeconomic variables and structure to a canonical arbitrage-free finance representation of the yield curve. The second examines bond pricing and bond risk premiums in a canonical macroeconomic dynamic stochastic general equilibrium model. The third develops a new class of arbitrage-free term structure models that are empirically tractable and well suited to macro-finance investigations. This article is based on a keynote lecture to the 41st annual conference of the Money, Macro, and Finance Research Group on September...
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...old as professional societies go, but then neither is the field of finance itself. Finance in its modern form really dates only from the 1950s. In the forty years since then, the field has come to surpass many, perhaps even most, of the more traditional fields of economics in terms of the numbers of students enrolled in finance courses, the numbers of faculty teaching finance courses, and above all in the quantity and quality of their combined schol-arly output. The huge body of scholarly research in finance over the last forty years falls naturally into two main streams. And no, I don’t mean “asset pricing” and “cor-porate finance,” but instead a deeper division that cuts across both. The division I have in mind is the more fundamental one between what I will call the business school approach to finance and the economics department approach. Let me say immediately, however, that my distinction is purely “notional,” not physical — a dis-tinction over what the field is really all about, not where the offices of the faculty happen to be located. In the United States, the vast majority of aca-demics in finance teach in business schools, not eco-nomics departments, and always have. At the same time, in the elite schools at least, a substantial fraction of the finance faculties have been trained in — that is, have received their Ph.D.s from —...
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...Communication Skills Courses are an integral part of professional education these days. Communication is the life-blood of any organisation in today’s competitive world. The more effective the communication is in an organisation, the more productive it becomes. But communication skills courses are unable to deliver what is expected. This inference is made out of reading many research papers and articles in the area. Almost every research points out gaps between the objectives of these courses and the actual delivery. When the students of some of the professional colleges in NCR were asked about the reasons and their expectations from these courses, 36 per cent students wanted these courses to focus more on improving listening skills, almost...
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...Running head: Fundamentals of Macroeconomics Paper Fundamentals of Macroeconomics Paper – Part 1 Fundamentals of Macroeconomics Paper – Part 1 * Gross Domestic Product (GDP) – The monetary value of all the finished goods and services produced within a country's borders in a specific time period, though GDP is usually calculated on an annual basis. It includes all of private and public consumption, government outlays, investments and exports less imports that occur within a defined territory. * Real GDP - An inflation-adjusted measure that reflects the value of all goods and services produced in a given year, expressed in base-year prices. * Nominal GDP- A gross domestic product (GDP) figure that has not been adjusted for inflation. * Unemployment Rate - The percentage of the total labor force that is unemployed but actively seeking employment and willing to work. * Inflation Rate - The rate at which the general level of prices for goods and services is rising, and, consequently, purchasing power is falling. * Interest Rate - The amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets. Interest rates are typically noted on an annual basis, known as the annual percentage rate (APR). Running head: Fundamentals of Macroeconomics Paper Fundamentals of Macroeconomics Paper – Part 2 Fundamentals of Macroeconomics Paper – Part 2 Purchasing of groceries affects the households, government...
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...Is empowerment a valuable tool for increasing efficiency and effectiveness in today’s organisations? In recent years, the degree of competition in the business world has increase dramatically, business has to be able to adapt with the change of the environment, law, and technology. Many managerial practices have been developed to enable the organisation to increase its efficiency and effectiveness. Empowerment as a tool that focusing on increasing employee motivation to contribute on the organisation has been discussed in widely for years, many scholars have conducted a large number of study on this regard. From various journal articles, this paper will define and discuss the benefit of the concept of empowerment on the organisation in three different aspects, first, the individual empowerment which personal perception on the workplace. Second, empowerment climate which is directly related to firm’s code of conducts as well as structures. Lastly, the relationship across two level or multi-level empowerment will be explained and discussed. The question that is the empowerment a valuable tool for increasing organisation’s efficiency and effectiveness will also be answered There are arguments on the definition of empowerment since this concept is complex and can be explained on multiple dimensions, levels, and disciplines. Definition of empowerment in general was explicitly given by Conger and Kanungo (1988) as “ a process of enhancing feeling of self-efficacy among organisational...
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...beneficial not only for the individual, but for the firm and the macro-economy. The extent to which firms undertake training is important in establishing the amount of support for human capital theory. During 2001 – 2002, the Australian Bureau of Statistics reported 81% of all Australian employers provided some training for their employees. Of all employers, 79% provided unplanned or on-the-job training while 41% provided structured or specified content training. These statistics are evidence of employers approach in that training is seen as a necessity; but does management d understand the link between training and improved performance outcomes? Capital is a product that yields returns. Traditionally we associate this with investment funds, land or equipment. Taylorism emerged in the 1890’s and focused on applying science to the engineering process with a view to driving efficiencies by way of increasing productivity by refining processes or reducing inefficiencies via reduced wastage. It was not until the 1950’s that consideration was given that workers contributions could be recognised as capital. The fundamental principle underpinning HCT is the belief that peoples’ learning capabilities are of comparable value to other resources involved in the production of goods and services (Lucas 1988). There is no doubt that human capital and HRD are inextricably linked as is supported by a number of texts and papers. In understanding HCT, we seek to understand what practical...
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...Annotated Bibliography Marvin Wilcox Liberty University Biong, H., Nygaard, A., & Silkoset, R. (2010). The influence of retail management’s use of social power on corporate ethical values, employee commitment, and performance. Journal of Business Ethics, 97, 341-363.Retrieved from http://search.proquest.com.ezproxy.liberty.edu:2048/docview/821301766 The authors of this business journal explore the recent activities of today’s retail giants and how their ethical behavior affects their brand, objectives, performance and stakeholders. The authors investigate the origins of certain variables that affect the ethical values of an organization. In addition, a review is performed on how both ethics along with these variables contribute to the success of the organization with respect to quality and quantity of output. A link is established between power, ethics and commitment to productivity. Brickley, J.A., Smith , C.W. & Zimmerman, J.L. (2002). Business ethics and organizational architecture. Journal of Banking and Finance, 26 (9), 1821-1835. Retrieved from http://dx.doi.org/10.1016/S0378-4266(02)00193-0 This journal implies that there is potential for a balance between economics and business ethics in several instances. One instance is found in the presumptions of how organizational members make decisions and from what ethical foundation they are considered? In addition, the importance of the union between business ethics and organizational structure is visited considering...
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